December 21, 2007

USDA to pay disaster fees for crop, livestock and feed losses

The US Department of Agriculture will start paying farmers and ranchers across the country who suffered casualties from natural disasters.

Acting Agriculture Secretary Chuck Conner said the USDA numerous agricultural producers suffered financial hardships in recent years because of floods, wildfires, tornadoes and other weather-related disasters.

USDA is currently processing about US$1 billion in payments under the Crop Disaster Programme, Livestock Compensation Program and Livestock Indemnity Programme. The agency provides payments to farmers who suffered crop, livestock and feed losses in 2005, 2006, and before February 28, 2007. But, producers must choose one year for which to receive payments.

The Crop Disaster Programme (CDP) provides benefits to farmers who suffered quantity and quality losses from natural disasters and related conditions that happened in 2005, 2006 and for 2007 crops if the crop was planted or prevented from being planted before February 28, 2007. USDA is only compensating producers for quantity losses under this program Payments for the quality losses will not be distributed until early 2008, after sign-up for quality loss.

The Livestock Compensation Programme (LCP) compensates livestock producers for feed losses resulting from natural disasters that occurred between January 1, 2005, and February 28, 2007. Producers who suffered losses caused by blizzards that started in 2006 and continued into 2007 are eligible. Producers in primary or nearby countries that were declared secretarial disaster areas or counties declared presidential disaster areas between Jan. 1, 2005, and Feb. 28, 2007, are also eligible.

Moreover, USDA will soon earmark more than US$11 million to Alabama, Florida, Idaho, Mississippi and Oklahoma through the LCP Catfish Grant Program. Alabama will receive US$3,121,477.94; Florida US$34,879.25; Idaho US$6,968.00; Mississippi US$8,123,840.88; and Oklahoma US$5,651.10. USDA also approved the following six states to receive funds through the Catfish Grant Program: Arkansas, California, Georgia, Kentucky, Louisiana and Texas. USDA will distribute funds to the six states after they conduct sign-up and submit requests for payments.

The Livestock Indemnity Program (LIP) compensates livestock producers for livestock losses between Jan. 1, 2005, and Feb. 28, 2007, that were caused by natural disasters, including blizzards that started in 2006 and continued into 2007. Producers in primary or contiguous counties that were declared secretarial disaster areas or counties declared presidential disaster areas between Jan.1, 2005, and Feb. 28, 2007, are also eligible.

The "US Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007," signed into law on May 25, 2007, by President Bush authorizes CDP, LCP and LIP. USDA's Farm Service Agency (FSA) administers the programs.